Econometric Model of Lithuanian Health Care System Indicators

Abstract

The article deals with relation between Lithuanian health status,gross domestic product (GDP) and health care costs. The mainpurpose of this analysis was to estimate an adequate model,which would be able to reveal the relation between quality ofLithuanian health care system and its elements. Also, trends ofthese variables are included in the analysis. The methods ofstatistical and econometric analysis, such as PCA, deaggregationprocedure and others were employed. It was concluded that thefirst order vector auto regression model (VECM(1)) adequatelyexplains the given data. Forecast of the variables was performedon the basis of the aforementioned model.